The award comes as the Pentagon considers terminating or sharply reducing the long-delayed Next Generation Operational Control System, known as OCX, developed by RTX RTX 0.25%↑. Originally contracted to Raytheon (now RTX) in 2010 with an expected delivery around 2016 at roughly $1.5 billion, the program has ballooned to nearly $8 billion in total costs — including $7.6 billion for the core GPS III ground system and more than $400 million for an OCX augmentation to support GPS IIIF satellites.

Delivery has slipped more than seven years, with the system formally handed over in July 2025, in a positive turn of events, but remains nonoperational nine months later due to persistent technical issues and software defects.

The new Lockheed Martin contract effectively sustains and upgrades the legacy Architecture Evolution Plan system — which the company has already enhanced under prior work to control GPS III satellites and enable early use of the encrypted M-Code signal — as a workaround while OCX struggles. However, it also restores Lockheed Martin as the lead ground-segment contractor amid OCX delays.

The Pentagon submitted an analysis of OCX options to its acquisition chief in late March, with alternatives including folding key capabilities into the upgraded legacy system rather than completing the full OCX Blocks 1 and 2. Officials have warned that continued delays put warfighter capabilities at risk, though no final decision on cancellation has been announced.